2010 Change Snapshot


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Our latest report on the most pertinent changes in Asia is out! We have taken a street up approach, reporting on the significance of local market dynamics in dictating a new influence, both at home and on the world front.

Many trends reports for 2010 are filled with recessionary overtones and references to the new “thrift economy”, “frugality”, and “business unusual”. At The Change Agency, we like to look at things differently.

Here in the streets of Asia, the key operating word for 2010 is “bullishness” – Asian countries have come out of the global recession faster and stronger than anyone would have expected.

Growth in Asia is evident, but how and where, will change come from in 2010? In the report we highlight ten key changes in different Asian countries that reveal profound shifts in consumer values ranging from quality of life awareness to greater need for social collaboration and national unity.

Published in: Education, Technology, Business

2010 Change Snapshot

  1. 1. ©Lawerence Valencia 2010
  2. 2. 2010 CHANGE SNAPSHOT A view from the streets of Asia Environment Technology Local Branding Food Enterprise Grey Market Women GROWTH OF ECO-FRIENDLY STADIUMS Personal Empowerment Social Awakening National Unity
  3. 3. Many trends reports for 2010 are filled with recessionary overtones and references to the new “thrift economy”, “frugality”, and “business unusual.” At The Change Agency, we like to look at things differently. Here in the streets of Asia, the key operating word for the new year is “bullishness” - not lingering depression or recovery. Despite being hit by the worst economic crisis since the Great Depression, Asian countries have come out of the global recession faster and stronger than anyone would have expected. China is already on track to 10% growth this year. Compared with people in the West, those in Asian countries have kept their sunny mood. In China, India and Indonesia, more than 40% of respondents to a Pew Global Attitudes Project in Washington DC say they are satisfied with their lives – and in China the figure is 87%. Meanwhile, in France and Britain the share is below 30%, and in the United States a mere 35%. This data reflects the consumer confidence and powerful acceleration of economic power away from rich nations towards the Asian emerging markets. The consumer worldwide is no doubt a changed animal seeking more connection and purposeful living, but the appetite for innovation, new forms of consumption and luxury pursuits is taking on new heights in the fastest changing, most exciting region on the planet. The year of the Tiger has begun! Foreword Change Agent Frederique Covington, on a plane somewhere
  4. 4. In 2010, we will see just how far the Asias as a region have emerged. This Change Snapshot sets up the scene from the street up, reporting on the significance of local market dynamics in dictating a new influence, both at home and on the world front. Growth in the Asias is evident, but how and where, will change come from in 2010? Here, we highlight 10 key changes in different Asian countries that reveal profound shifts in consumer values ranging from quality of life awareness to greater need for social collabora- tion and national unity. Eyes are set on a future that is increasingly Asian-led with more regional influences – locally made, locally raised and locally-based – and ambitions to exert more influence on the West and beyond. The Asias provide great insight into some of the world’s biggest issues – climate change, the aging of Baby Boomers, technology pervasiveness, and the growing power of women, to name a few. At the same time, these markets show us different pathways for answering these challenges with ingeniousness and hybrid models generating the growth of new industries and practices. The one size-fits all trends report is on its way out. Enjoy the view from the streets of Asia. Introduction Change Agent Natalie Gruis, IndoChina
  5. 5. Environment: from GREENWASHING to SUSTAINABLE LIVING Although it is among the biggest and fastest growing carbon emitters, China is steadily making changes toward sustainable growth. China has planted 20m hectares of forests between 2003 and 2008, and there has been a 51% growth in China’s renewable-energy output over the three years to 2008. China is on track for fulfilling on its ambitious goal of improving energy efficiency by 20% for 2006-2010 and developing renewable energy to account for 15% of energy consumption by 2020. And as always, China is doing it “my way” and while it took the heat during the Copenhagen Summit, it is nevertheless pressing on with an aggressive green agenda. The government has allocated 40% of its stimulus package to fund green companies, compared to 12% in the USA. Late last year, Chinese government officials signed an agreement with First Solar to complete the largest photovoltaic power plant in the world which would open the vast solar market in China. 2010 will be the year where China not only becomes the world’s second economic power (bypassing Japan), it will also exert its influence in a new way – green power. China Shanghai
  6. 6. SUSTAINABLE NEIGHBOURHOODS A sustainable neighborhood will integrate into the existing downtown urban district in Beijing improving transportation infrastructure while introducing energy-efficient buildings and green public space. The plan also provides a framework for new sustainable growth that would result in eliminating GROWTH OF ECO-FRIENDLY STADIUMS 215,000 tons of CO2 per year, which is the equivalent of planting 14 million adult trees. Beijing was the poster child for eco-friendly stadiums and buildings during the Olympics, China continues to seek practices to ensure sustainable living and development. and now other cities are following and starting more sustainable sports venues across China. A 38,500-square-meter football stadium, inspired by the design of a classic Chinese bamboo Source: http://www.inhabitat.com/2009/10/26/som-wins-competition-to-create-beijings-sustainable-city-center/ is being built in Dalian, featuring a reflective roof that reduces solar radiation and workload for the cooling system. It will be powered by wind turbines and solar panels, and water is collected for reuse in irrigation and air conditioning. Source: http://www.worldarchitecturenews.com/index.php?fuseaction=wanappln.projectview&upload_id=12476
  7. 7. ELECTRIC BIKES PLASTIC BAG KITES E-Bike culture has already become a force on More than a year after the pre-Olympic policy the road to be reckoned with. There were 21m took effect, China has reduced the usage of e-bikes sold in 2008 versus 9.4m autos, and plastic bags in supermarkets by 40 billion, or China will make another 30 million electric 66 percent - that’s the equivalent of 1.6 million bicycles in 2010. We are also seeing several tons of petroleum. New uses for plastic state-owned enterprises giving a 500rmb/mo. recycled bags are emerging such as colourful bonus to employees who don’t drive cars. kites, in the style of Chinese traditional kites. Source: http://www.inhabitat.com/2009/10/26/som-wins- Source: http://www.inhabitat.com/2009/10/26/som-wins- competition-to-create-beijings-sustainable-city-center/ competition-to-create-beijings-sustainable-city-center/ CYCLE CULTURE BRING-YOUR-OWN UTENSILS As cycle-culture becomes a symbol of an eco In Hong Kong the eco-friendly culture contin- chic lifestyle, a cycling dress code in Hong ues to grow as disposable items become Kong (e.g. folded trousers versus foldable replaced by eco-friendly or re-usable items. bikes) is emerging as a fashionable trend on From ‘Bring Your Own Bags’ to 'Bringing Your the streets, and cool trends places beyond Own Utensil’. the cycling streets.
  8. 8. ECO CONSCIOUS ADVERTISING WIND POWER Advertisements for eco-friendly and sustainable practices both by organizations and In 2009, China became the world’s biggest producer of wind power, and will soon be exporting companies are gaining visibility in Chinese media. abroad. In October, a Chinese bank investment came just in time to save a $1.5-billion, 36,000-acre wind-farm project in West Texas, indicating China’s new foothold on the international wind-power market. Source: http://www.dallasnews.com/sharedcontent/dws/dn/latestnews/stories/1030dnbuswind.264a63a1e.html
  9. 9. BATTERY POWERED INNOVATION BYD is a Chinese company with vision, and the world (and Warren Buffett who invested in it) is watching. It started as a battery company, later moving into the auto business in 2003. They have recently announced plans to sell their F3DM Plug-In in 2010 in the US at 22,000 First BYD logo New BYD logo dollars – less than the Prius and at least 2 years ahead of the Chevy Volt. Chemist turned business leader, Wang Chuanfu is driving innovation in clean-energy autos, aiming to make BYD’s batteries 100% recyclable, using a nontoxic electrolyte fluid. Wang is even known to drink the fluid for testing to prove that clean energy should be just that, clean – not creating more environmental problems. Interestingly, BYD’s logo has moved from oddly resembling BMW’s logo, to its own identity, and we hope this is signaling a change for China - moving from follower to leader in the area of sustainable practices. Source: http://www.treehugger.com/files/2008/12/byd-f3dm-electric-plug-in-hybrid-china.php http://money.cnn.com/2009/04/13/technology/gunther_electric.fortune/index.htm?postversion=2009041305
  10. 10. Technology: from “JARINGAN MOBILE” [mobile networking] to “MOBILISASI SOSIAL” [social mobilization] In 2009, Facebook rose from being Indonesia’s third most visited site to being the country’s number one, surpassing search giants such as Google and Yahoo!. Indonesia is now the 6th largest and 9th largest country globally for Facebook and Twitter respectively (Source: http://www.alexa.com/topsites/countries/ID). Social networking platforms have become a place for Indonesians to connect through applications, games, interest groups, and exercise their entrepreneurial spirit with start-ups that sell homemade handicrafts and clothing. Beyond this, technology has enabled a greater collective community where Indonesians interact and participate instantaneously: rising to speak out against and for common causes, and building more public debate and advocacy – a true transformation in a country that has typically been more at ease with talking than confronting. 2010 will see the further ascension of wireless technology and the increasing popularity of networking platforms. Indonesians’ sense of brotherhood and social bonding is being unleashed, giving rise to greater personal expression and empowerment. Indonesia Change Agent Barik Nawawi, Jakarta
  11. 11. PRITA FACEBOOK GROUP Prita Mulyasari, a mother of two, was detained on May 13, 2009 under the charges of defamation after she circulated emails to her friends complaining of the poor treatment she received at a hospital in Tangerang, near Jakarta. Currently, there is a Facebook group with over 380,000 members supporting her cause. Prita herself has also been invited to become a speaker at Pesta Blogger, Indonesia’s blogger community annual meet-up INDONESIAUNITE Within 2 hours after the July 17, 2009 bombings of JW Marriot and Ritz-Carlton hotels in Jakarta, “indonesiaunite” became the number one trending topic on Twitter. Source: theunspunblog.com/2009/06/02/backlash-begins-against-jailing-of-housewife-who-dared-complain-against-hospital/
  12. 12. Local Branding: from “HANG TAY” [western goods] TO “HANG TA” [domestic goods] Up to now, Vietnamese have regarded international brands and imports as the benchmark of quality. According to Euromonitor, 77% of Vietnamese favour foreign brands, while across Asia the average is closer to 30%. Two factors feed this preference. First, higher incomes resulting from the country’s economic development mean more Vietnamese people can afford high-priced products and services. Second, the newly emerging affluent classes in Vietnam want to establish themselves as connoisseurs of fashion and use the ownership of foreign brands to show off their wealth and status. But in 2009, a slew of incidents put imported brands under the gun. The China milk crisis, imported meat scares, and misleading labelling created confusion and doubt over the authenticity of quality claims from imported brands. In 2010, government communications and pricing initiatives will drive “hang viet” (Vietnamese products) to become synonymous with quality and affordability amongst the mass creating new market dynamics and opportunities for local brands. Vietnam Ho Chi Minh
  13. 13. PROMOTION OF VIETNAMESE PRODUCTS Started in 2009, the government launched a campaign "Nguoi Viet dùng hang Viet” (Vietnamese people use Vietnamese goods) due to continue in 2010. This initiative promotes the sale and advocacy of Vietnamese originated products and brands. GROWTH AND FRANCHISE OF LOCAL VIETNAMESE STORE CHAINS This is particularly driven through Vietnamese-made products and brands are becoming increasingly more acceptable creating the rural market, which accounts for competitive choice and the introduction of new tiers such as ‘local premium’ [where premium 70% of the Vietnamese population: was always defined as imported]. (Source: Business Monitor Interna- tional 2009) the biggest consumer segment to capture in 2010 with rising purchasing power and accessibility.
  14. 14. Food: from “STREET MEAT” to COSMOPOLITAN CUISINE Cambodia is often associated with the image of locals living hand to mouth, backpackers on budgets and expats craving cheap food. However, Cambodia is currently undergoing a food renaissance with the rise of a small well travelled Khmer middle class, an influx of returnees, and adventurous business people opening boutique hotels, micro breweries and concept restaurants. In 2010, Cambodia’s vastly improving service sector will further explode and offer deliciously eclectic and adventurous food choices that fuse the familiar and foreign. Whether you indulge in Kampot pepper crusted tuna in impeccably restored colonial splendour or lounge Mekong-side with a crispy tarantula entrée and silver service, Cambodia’s new food revolu- tion reflects the demand for better value, quality and choice from discerning urbanites, Khmer and foreign. A new unexpected, and unassuming, food capital is on the rise. Cambodia Change Agent Marianne Waller, Cambodia
  15. 15. FCC cafe franchise GROWTH AND FRANCHISE OF LOCAL VIETNAMESE STORE CHAINS FUSION RESTURANT EXPEREINCES Vietnamese-made products and brands are becoming increasingly more acceptable creating Restaurant experiences are delivering more competitive choice and the introduction of new tiers such as ‘local premium’ [where premium than new tastes for the local and foreign was always defined as imported]. palette: reinventing dining culture. Knyay café Metro’s signature dining promise
  16. 16. Enterprise: from COPING WITH NEW ORDER to SHAPING NEW ORDER In 2007, India was labeled the ‘Bird of Gold’ by McKinsey; the market potential was visible on paper and the numbers were promising. Average income per household had doubled since 1985. But with the global recession, sustainability of the country’s growth was put in question creating apprehension that India might not be able to continue its transition to a large middle class society. However, India’s relentless entrepreneurship fueled fast recovery and continued growth throughout 2009 proving the country’s unrelenting strength and enterprising spirit. In 2010, India will emerge as the key driver of a new order as this growth enables greater opportunities for local and international business expansion and prosperity, empowering more Indian industries to become significant forces on the global stage alongside the creative industry (music, film) which has already greatly influenced the West. India Change Agent Dheeraj Sinha, India
  17. 17. UNRELENTING ECONOMIC GROWTH While 2009 was an economic bloodshed for most countries, India’s GDP beat all forecasts and fluctuating global markets to register an unbelievable growth of 7.9 % ahead of all predictions, setting a benchmark for contin- ued growth in 2010 (Source: Economic Times of India – 1st December 2009). INTERNATIONAL VOICE AND INFLUENCE IN COPENHAGEN India has emerged as a powerful force in international policy development marked by its influence in the Copenhagen Summit in 2009. National leaders negotiated India’s interest on the world stage to protect industry development and economic growth predictions for 2010. LOCAL BUSINESSES BECOME GLOBAL ENTERPRISE Tata Motors Ltd. acquired Jaguar and Land Rover (JLR) in one of India’s largest mergers and acquisitions in history, enabling the India-based company to acquire a global footprint and enter the high-end premier segment of the global automobile market, creating more jobs for local industries during 2009. Since the acquisition, Tata Motors owns the world's cheapest car – Nano, and luxury marquees like the Jaguar and Land Rover setting itself up as a leader in the global industry into 2010.
  18. 18. Grey Market: from SILVER BOOMERS to ACTIVE AGERS With falling birth rates and rising life expectancy, Singapore’s population is greying. Singapore ranks 3rd in Asia for the highest ageing population with 12.5% of the total population aged 60 and above, behind Japan (22%) and Hong Kong (13%). By 2015, 18% of Singaporeans are expected to be over 60 (Source: Singapore Department of Statistics 2008, Euromonitor 2009). 2010 will mark a turning point with government policies promoting re-hiring of able, older workers, and an ‘active ageing’ lifestyle for seniors to live, learn and play. The seniors market in Singapore is expected to grow exponentially as the Baby Boomers go into their silver years. The good news is that Singapore’s Baby Boomers kept spending despite the economic downturn (Source: Council for Third Age), and aren’t showing signs of slowing down with age. From food court Hawker markets to uptown malls, they are active spenders, shoppers and job holders earning their keeps as the “older but not old.” Singapore Singapore
  19. 19. MARKETING TO A NEW SEGMENT In 2009, the first ever 50+ consumer fair was held: Master- card calls them the ‘glittering silver segment’. The unexplored 50+ segment will continue to be a powerful consumer in 2010. PICKING UP SPEED AFTER 50 The 50+ themselves are increasing capable, long-lived, well-off financially and are no longer wedded to their jobs like their fore-fathers.
  20. 20. Women: from ‘MAKEINU’ [loser dog] to ‘CH’ING SHOU NU’ [successfully independent 25-35] In 2010, women will become the driving force of the economy in Taiwan. According to a report by the Ministry of Interior, Taiwan’s female population is expected to surpass that of males in five years. As women in Taiwan become active professionals contributing to the nations’ gross enrollment, their purchasing power will continue to rise: women 18-39 will control $440 hundred million in annual consumer spending in 2014 according to Nielsen. As women in Taiwan continue to gain greater sufficiency and confidence, products and brands in 2010 will need to consider female audiences and their endorsement. Female sentiment has already showed returns with messages “beat the bad economy with love” and “believe in yourself” to promote PayEasy, the biggest and only online shopping site for women, pulling in sales every 10 seconds. Taiwan Change Agent Chunkai Lan, Tapei
  21. 21. FEMALE ENDORSMENTS Woman autonomy and confidence is becoming more acceptable and acclaimed as drama series ‘Veronica Shuang’s’ lead lady Cheryl Yang - once referenced as a ‘MAKEINU’ or loser dog for being over 30, successful but single - gains applaud as the face of top brands in Taiwan such as Levis, Haagen-Dazs, Lux and Samsung leading the way for a new Taiwanese woman: ‘CH’ING SHO NU’. WOMEN’S SALE FRENZY With greater independence and economic recognition, women in Taiwan have become a key segment to get to the cashier. In October 2009, all department stores hosted an array of anniversary sale events to initiate spending, with 70% of sales from female consumers. As female spending power grows, women will continue to be the target to attract in 2010.
  22. 22. Personal Empowerment: from “BAHALA NA” [leave it to god’s hands] to “AKO NA” [leave it to me] Filipinos have traditionally been known to have a “Bahala na” attitude. The word “Bahala” is believed to have been derived from the word “Bathala” which in the Tagalog language means God. As a linguistic expression, “Bahala na” signifies leaving something or someone in the care of God. This expression has become a philosophy of life and developed into a significant core of Filipino attitudes. Fueled by movements that promote personal empowerment, 2010 will mark a change in this attitude as more and more Filipinos begin to realize the importance and value of taking their fate into their own hands. Freedom has never been more in vogue. Philippines Change Agent Dean Dee, Manila
  23. 23. VOLUNTEER WATCHDOGS COMMUNITY A movement sponsored by the country’s largest broadcast network “Ako and Simula” (which translates to “I am the beginning”), asks for volunteers to become watchdogs for the coming elections. In 2009 there were 50,000 official participants, and this will continue to grow as volunteers all over the country expand. At one point during a leadership forum featuring the presidential candidates, 150,000 Filipino users actively TYPHOON RESPONSE participated and discussed the elections through numerous new media channels. The unprecedented damage from typhoon Ondoy drew an unprecedented response of mass donations by both private individuals and companies: ABS- CBN, one of the country’s largest television network reported that they were able to collect a staggering P94.97M of cash donations, while also receiving P108.75M worth of assorted “in kind” donations.
  24. 24. SELF-STARTING SOCIAL CAUSES Efren Penaflorida started a “pushcart classroom” to bring education to poor children as an alternative to joining gangs in 1997. Working with Bates 141, this cause has taken on an estimated 10,000 volunteer members to help PERSONAL EMPOWERMENT CAMPAIGN teach more than 1,500 children “Ako Mismo” movement (literally translates to “I, myself”) is funded by the country’s living in the slums. largest telecommunications network aiming to battle “indifference and the feeling that the individual is helpless”. Efren’s efforts were recognized by the international community when In 2009, the campaign solicited 295,507 commitments of self action in their “wall of he was made CNN’s 2009 Hero of commitments” and will continue to mark self achievement and progress in 2010. the Year.
  25. 25. Social Awakening: from materialistic ‘SING NE’ to holistic ‘SING NE’ [‘SING NE’ means progression to a new level] In 2009, ‘SING NE’ was one of the top 3 buzz words in local media (Source: City University of Hong Kong), reflecting a strong aspiration for personal progress in society. However, personal advancement was not fully realized in 2009 due to the global recession. The growing sense of recovery in 2010 promises greater progression. Yet, most people, especially the 80 ‘HOU’ (who are born in 1980’s), do not feel like they are going to share the fruit of recovery. A sense of disparity is gaining momentum, with a growing perception of ‘SUC CHE’ phenomenon in which the growth opportunities for younger generations are blocked by the delayed retirement of Boomers. Whether the ‘SUC CHE’ phenomenon is real remains a heated debate, but as the perception grows, a social awakening is occurring: the importance of materialism as badges of success is shifting in favor of non-economic values such as justice, social responsibilities, transparency, work/life balance and quality of life, which will become intrinsic to personal progress and advancement in 2010. Hong Kong Hong Kong
  26. 26. LIFE ENRICHING EXPERIENCES BECOME NEW PURCHASES CULTURAL ENLIGHTENMENT Consumers are searching for greater fulfillment from their purchases – not only to flaunt AS NEW LUXURY and enjoy their success but also to give them more enriching experiences. To a growing number of Hong Kong consumers, luxury means more than luxury labels, but substance and sophistication of experience may take time to learn and appreciate. Two new shopping malls, 1881 Heritage and K11, opened in late 2009 demonstrated this new luxury mindset by re-defining the 1881 Heritage championing the conservation of local heritage customer experience from a pure materialistic enjoyment to a cultural heritage and art appreciation experience respectively. K11 – the first art mall in Hong Kong PICKING UP SPEED AFTER 50 The 50+ themselves are increasing capable, long-lived, well-off financially and are no longer wedded to their jobs like their fore-fathers.
  27. 27. National Unity: from UNITY IN UNIFORMITY to UNITY IN DIVERSITY 40 years ago racial riots raged through Malaysia sweeping away the country’s appearance of racial harmony. The Governments’ affirmative action program in response bridged the divide to some extent. However, more had to be done. “1Malaysia” was launched to strongly emphasize national unity, ethnic tolerance, and Government efficiency. The website 1Malaysia.com.my facilitates the “1Malaysia” campaign by providing a platform for public dialogue to promote Malaysian unity, religious and ethnic tolerance, as well as a deeper appreciation of Malaysia’s cultural diversity. “1Malaysia” is also making extensive use of social media tools such as Facebook and Twitter. It is therefore expected that in 2010, the campaign will seep into the streets and start to affect consumer mindsets. Brands should be more mindful of promoting ethnic diversity, cultural tolerance and a fair business playing field. National unity will become the new standard for redefining competitive standards. Malaysia Kuala Lumpur
  28. 28. SOCIAL MEDIA GROUPS Social media networks have created forums for Malaysians to share their thoughts on policies. With anticipation to what “1Malaysia” will mean to Malay- sians there is a mixture of hope and anxiety to what real outcomes will occur in 2010. ADVERTISING AND PR Dato Seri, We are waiting eagerly on how to be engaged with you through a programme you are planning. We truly want to see a better “1Malaysia” has become a buzzword M’sia and believe you can do it. I have a few ideas on 1Malaysia for incorporated and themed to everything Penang but never knew how to implement them Government related as well as by local Source: 1Malaysia.com.my advertisers, who are jumping on to the bandwagon of patriotism to promote the ethnic blind concept of “Bangsa Malaysia” (a Malaysian race) in order to do their part in nation building. This trend that will continue in 2010 with more messages of reconciliation,change and coming together to solve challenges of the nation. A great move to promote better integration and acceptance. Hopefully, its not merely a political propaganda Source: Street interview
  29. 29. Change happens when you look at things differently.